Good morning Natalie, I appreciate your suggestion to provide a brief overview of currently trending issues for Canadian companies grappling with recently implemented tariffs on Canadian steel and aluminum producers and exporters, as well as those likely to come in March across other sectors.
Having worked in the executive search industry for close to 25 years, and considered to be an industry expert, I have seen the ups and downs in the market. Unlike the financial crisis in 2008 or the .com bubble in the mid 90’s, the implications of the Trump’s initiation of economic warfare against nations exporting processed goods to the US are far more daunting. Of particular severity, are the threatening and debilitating tariffs against the US’s closed ally, friend and trading partner, Canada. The foundation of these strategies are without merit and seem to be based on radical, nationalistic, and protectionist ideals bound to not only negatively impact the trading partners of the U.S, but the U.S. itself. President Trump has chosen the surround himself with “yes men” who apparently are more concerned with keeping their jobs verses pushing back against executive orders which will put the global markets into disarray.
While the effects of the tariffs on Canada’s economy have been broadly and publicly discussed, the main focus of our frustration and anger has been related to the impact of these tariffs on the Canadian workers, consumers, the rising cost of Canadian exporters of goods to the US and the “booing” of the national anthem of the United States at sporting events. All issues which deserve attention and discussion. However, one topic which has flown under the radar to date has been the impact of these initiatives on the leadership ranks in Canadian businesses and related organizational structures.
The greatest areas of impact for our local manufacturers and distributors lie within our supply chains, procurement organizations and commercial teams. With rising costs, should we look at other nation suppliers of materials? Do we need to re-position our supply chains and distribution networks? Do we need more strength in our commercial teams to build up customer management initiatives and regional marketing and business development campaigns in the EU? South America? Asia?
Our firm is experiencing client concerns in these functional areas at leadership levels internationally. “We need to strengthen our teams in these areas. New executive talent is required to enhance our organizational strength is these areas as we prepare for 4 years unpredictability impacting where we source materials and where our geographic revenue will come from”. According to a President of a leading Canadian, international exporter of goods said to me recently.
In-order to remain the “True North Strong and Free”, the time has arrived to protect our country and economy and as a nation re-think our umbilical cord type connection to the US. Perhaps we can thank President Trump for our renewed patriotism with the likely outcome of his anti-Canadian campaign being a stronger and more diversified economy. We will never be the 51st state economically, or politically. If this rhetoric continues or worse, we may be looking at part 2 of 1812.
